ATALAYA MINING COPPER, S.A.

MANAGEMENT'S REVIEW AND

UNAUDITED CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

30 June 2025

Management review report

Notice to Reader

The accompanying Unaudited Condensed Consolidated Interim Financial Statements of Atalaya Mining Copper, S.A. have been prepared by and are the responsibility of its management.

Introduction

This report provides an overview and analysis of the financial results of operations of Atalaya Mining Copper, S.A. and its subsidiaries ("Atalaya", the "Company" and/or "Group"), to enable the reader to assess material changes in the financial position between 31 December 2024 and 30 June 2025 and results of operations for the three and six months ended 30 June 2025 and 2024.

This report has been prepared as of 11 August 2025. The analysis hereby included is intended to supplement and complement the Unaudited Condensed Consolidated Interim Financial Statements and notes thereto ("Financial Statements") as at and for the period ended 30 June 2025. The reader should review the Financial Statements in conjunction with the review of this report and with the audited, consolidated financial statements for the year ended 31 December 2024, and the Unaudited Condensed Consolidated Interim Financial Statements for the period ended 30 June 2024. These documents can be found on Atalaya's website at www.atalayamining.com

Atalaya prepares its Annual Financial Statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and the interpretations of the IFRS Interpretations Committee (IFRS IC) approved by Regulations of the European Commission, and its Unaudited Condensed Consolidated Interim Financial Statements in accordance with International Accounting Standard 34: Interim Financial Reporting. The currency referred to in this document is the Euro, unless otherwise specified.

Forward-looking statements

This report may include certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitute forward-looking statements. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based include that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Atalaya and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in this report and other documents filed with the applicable securities regulatory authorities. Although Atalaya has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Atalaya undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

1.    Incorporation and description of the Business

Atalaya Mining Copper, S.A. was incorporated in Cyprus on 17 September 2004 as a private company with limited liability under the Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office after the cross-border conversion finished on 10 January 2025 is Paseo de las Delicias, 1, 3, 41001, Sevilla, Spain.

The Company was first listed on the Alternative Investment Market (AIM) of the London Stock Exchange in May 2005, trading under the symbol ATYM. On 29 April 2024, the Company was admitted to the premium listing segment of the Official List maintained by the FCA and to trading on the main market of the London Stock Exchange. After completion of the cross-border conversion, the Company's shares commenced trading under "Atalaya Mining Copper, S.A." on 10 January 2025 and the nominal value of the Company's shares were also adjusted from 7.5p to €0.09 per share.

Atalaya is a European mining and development company. The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in Spain, elsewhere in Europe and Latin America.

The Group has interests in four mining projects: Proyecto Riotinto, Proyecto Touro, Proyecto Masa Valverde and Proyecto Ossa Morena. In addition, the Group has an earn-in agreement to acquire two investigation permits at Proyecto Riotinto East.

In November 2024, Atalaya entered into earn-in agreements on two exploration projects in Sweden (the Skellefte Belt and Rockliden) located in prospective volcanogenic massive sulphide ("VMS") districts.

Proyecto Riotinto

The Company owns and operates through a wholly owned subsidiary, "Proyecto Riotinto", an open-pit copper mine located in the Iberian Pyrite Belt, in the Andalusia region of Spain, approximately 65 km northwest of Seville. A brownfield expansion of this mine was completed in 2019 and successfully commissioned by Q1 2020.

Proyecto Touro

As described in the Annual Report 2024, the Group initially acquired a 10% stake in Cobre San Rafael, S.L. ("CSR"), the owner of Proyecto Touro, under an earn-in agreement that allows the Group to acquire up to 80% of the copper project. Proyecto Touro, located in Galicia (north-west Spain), is currently the permitting process.

In July 2017, the Group announced that it had executed the option to acquire 10% of CSR, a wholly owned subsidiary of Explotaciones Gallegas S.L. The earn-in agreement was structured in four phases, enabling the Group to gradually increase its stake in CSR up to 80%:

-     Phase 1 - The Group paid €0.5 million to secure and exclusive right to fund up to a maximum of €5.0 million to support the permitting and financing stages.

-     Phase 2 - Upon receipt of permits, the Group is required to pay €2.0 million to acquire an additional 30% interest in the project (cumulative 40%).

-     Phase 3 - Once development capital is secured and construction commences, the Group is required to pay €5.0 million to acquire an additional 30% interest in the project (cumulative 70%).

-     Phase 4 - Upon declaration of commercial production, the Group purchases an additional 10% interest (cumulative 80%) in consideration for a 0.75% Net Smelter Return royalty, with a buyback option.

The agreement was structured to ensure that payments would be made progressively as the project is de-risked, permitted, and becomes operational.

On 24 June 2024, Atalaya announced that Proyecto Touro, through CSR, had been declared a Strategic Industrial Project ("Proyecto Industrial Estratégico" or "PIE") by the Council of the Xunta de Galicia ("XdG"). Under Galician legislation, PIE status sought to simplify administrative procedures and aimed to shorten permitting timelines.

This declaration highlighted the XdG's commitment to promoting new investment in the region and aligned with the objectives of the European Union. As copper was considered a strategic raw material by the EU, the project was recognised for its potential to become a sustainable European source of copper production.

The XdG continued its review under the simplified procedures applicable to PIE projects. The public information period, which informed nearby communities and organisations about the proposed project, concluded on 31 January 2025. At that time, CSR was focused on analysing and responding to feedback from the public and assessing sectoral reports issued by various departments of the XdG.

As a result of developments during 2024, the Group concluded that it was likely that phases 2, 3 and 4 of the Touro project would be completed. Accordingly, in line with the Group's accounting policy on contingent payments, it recognised an intangible asset of €16.5 million as of year-end, together with the related contingent liabilities.

In accordance with the Group's policy on non-controlling interests, 20% of the newly recognised intangible asset was allocated to non-controlling interests, amounting to €3.3 million.

As also disclosed in the Annual Report 2024 and reflecting the Group's updated expectations regarding the completion of future phases, the Group reversed a previously recorded impairment from 2019 of €6.9 million, which related to capitalised expenses associated with Proyecto Touro.

In parallel, the Company continued to engage with local stakeholders through recruitment initiatives and maintained its water treatment operations to improve water quality in rivers around Touro.

Furthermore, the Company carried out infill and step-out drilling programmes, focused on areas within the initial mine plan where mineralisation remained open.

Proyecto Masa Valverde

On 21 October 2020, the Company announced that it had entered into a definitive purchase agreement to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde polymetallic project located in Huelva (Spain). Under the terms of the agreement Atalaya will make an aggregate €1.4 million cash payment in two approximately equal instalments. The first payment is to be executed once the project is permitted and the second and final payment when first production is achieved from the concession.

In November 2023, the exploitation permit for the Masa Valverde and Majadales deposits was officially granted. Following this milestone, in January 2024, the Company made a payment of €0.7 million as part of the process associated with the granted permits.

Proyecto Ossa Morena ("POM")

In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which owned 9 investigation permits. The acquisition also provided a 100% interest in three investigation permits that are also located along the Ossa-Morena Metallogenic Belt. In Q3 2022, Atalaya increased its ownership interest in POM to 99.9%, up from 51%, following completion of a capital increase that will fund exploration activities. During 2022 Atalaya rejected 8 investigation permits.

Atalaya will pay a total of €2.5 million in cash in three instalments and grant a 1% net smelter return ("NSR") royalty over all acquired permits. The first payment of €0.5 million was made following execution of the purchase agreement. The second and third instalments of €1 million each will be made once the environmental impact statement ("EIS") and the final mining permits for any project within any of the investigation permits acquired under the agreement are secured. In accordance with the agreement, these outstanding instalments are disclosed as a non-current payable to the sellers.

Proyecto Riotinto East

In December 2020, Atalaya entered into a Memorandum of Understanding with a local private Spanish company to acquire a 100% beneficial interest in three investigation permits (known as Peñas Blancas, Cerro Negro and Herreros investigation permits), which cover approximately 12,368 hectares and are located immediately east of Proyecto Riotinto. After a short drilling campaign, the Los Herreros investigation permit was rejected in June 2022. Proyecto Riotinto East consists of the remaining two investigation permits, Peñas Blancas and Cerro Negro, totalling 10,016 hectares.

Skellefte Belt Project and Rockliden Project

During 2024, the Group entered into earn-in agreements with Mineral Prospektering i Sverige AB ("MPS") in relation to the Skellefte Belt Project and the Rockliden Project, both situated in well-established volcanogenic massive sulphide districts renowned for their mineral resource potential.

2.    Overview of Operational Results

Proyecto Riotinto

The following table presents a summarised statement of operations of Proyecto Riotinto for the three and six months ended 30 June 2025 and 2024, respectively.

(1)      Represents the Cerro Colorado pit only.

(*) Refer Section 5 of this Management Review.

(1)   Represents the Cerro Colorado pit only.

Note: Some figures may not add up due to rounding.

Three months operational review

Mining

Ore mined was 3.5 million tonnes in Q2 2025 (Q2 2024: 3.8 million tonnes), compared with 3.7 million tonnes in Q1 2025.

Waste mined was 12.6 million tonnes in Q2 2025 (Q2 2024: 7.5 million tonnes), compared with 11.3 million tonnes in Q1 2025. In addition, waste stripping activities advanced at the San Dionisio area, supporting future access to higher-grade material following the granting of the environmental permit (AAU) in May 2025.

Processing

The plant processed 4.0 million tonnes of ore in Q2 2025 (Q2 2024: 4.1 million tonnes), compared with 4.2 million tonnes in Q1 2025. This reflects ongoing strong plant performance, above the 15 million tonne per annum nameplate capacity. The next SAG mill liner change is scheduled for Q3 2025.

Copper grade in Q2 2025 was 0.43% (Q2 2024: 0.33%), compared with 0.42% in Q1 2025.

Copper recovery was 76.75% in Q2 2025 (Q2 2024: 85.81%), compared with 80.98% in Q1 2025. The decrease was due to mineralogical variability of certain ores processed during the quarter. Nevertheless, these materials contributed higher grades than the average, enhancing overall feed quality.

Production

Copper production was 13,175 tonnes in Q2 2025 (Q2 2024: 11,583 tonnes), compared with 14,291 tonnes in Q1 2025. The quarterly decrease was the result of lower recoveries and lower throughput, partly offset by higher grades.

On-site copper concentrate inventories stood at 9,820 tonnes at 30 June 2025, compared with 19,031 tonnes at 31 March 2025, reflecting increased concentrate sales. Copper contained in concentrates sold was 14,024 tonnes in Q2 2025 (Q2 2024: 11,397 tonnes), compared with 14,687 tonnes in Q1 2025.

Six months operational review

Copper production during H1 2025 was 27,466 tonnes, compared with 22,249 tonnes in the same period of 2024. Higher production was primarily the result of increased ore throughput and higher copper grades, which more than offset the impact of lower recoveries.

Payable copper in concentrates was 25,894 tonnes, compared with 21,116 tonnes of payable copper in H1 2024.

Ore mined in H1 2025 was 7.2 million tonnes, compared with 7.5 million tonnes during H1 2024. Ore processed was 8.2 million tonnes, versus 7.8 million tonnes in H1 2024, although a portion of lower-grade stockpiles was processed during H1 2025.

Ore grade during H1 2025 was 0.42% Cu, compared with 0.33% Cu in H1 2024. Copper recovery was 78.90%, compared to 85.30% in the same period of the previous year. Concentrate production amounted to 157,258 tonnes, above the H1 2024 production of 113,308 tonnes.

3.    Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the cautionary statement on forward-looking statements included in the Basis of Reporting. Should the Company consider the current guidance no longer achievable, then the Company will provide a further update.

Operational guidance

Proyecto Riotinto operational guidance for 2025 is as follows:

(1)      Represents the Cerro Colorado and San Dionisio pits; prior guidance included Cerro Colorado only.

(2)      Represents updated guidance.

Production

Updated copper production guidance for FY2025 is 49,000 - 52,000 tonnes, up from 48,000 - 52,000 tonnes, as a result of the performance in H1 2025. Full year production is still expected to be weighted slightly towards H1 2025 as a result of pit sequencing.

Operating Costs

Updated guidance for FY2025 Cash Costs and AISC are as follows:

·      Cash Costs range of US$2.60 - 2.80/lb copper payable, down from US$2.70 - 2.90/lb

·      AISC range of US$3.10 - 3.30/lb copper payable, down from US$3.20 - 3.40/lb

Euro-denominated costs were well-controlled in H1 2025, however, the stronger EUR/USD exchange rate is expected to be a headwind for USD-denominated metrics in H2 2025.

Expected costs associated with waste stripping at the San Dionisio area in H2 2025 are now included in the guidance for Cash Costs and AISC, having been reallocated from the non-sustaining capital investment guidance shown below.

AISC guidance continues to exclude investments in the tailings dam, consistent with prior reporting.

Non-Sustaining Capital Investments

Updated guidance for FY2025 non-sustaining capital investments is €29 - 37 million, down from €58 - 82 million.

Key changes include the reallocation of expected San Dionisio H2 2025 waste stripping costs to Cash Costs and AISC, and the expected deferral into 2026 of certain expenditures related to the road relocation and the Proyecto Masa Valverde access ramp.  

Exploration Expenditures

Updated guidance for FY2025 exploration expenditures is €8 - 12 million, up from €6 - 8 million. The main expenditures are associated with Proyecto Masa Valverde, the San Antonio deposit and the earn-in commitments with MPS in Sweden.

4.    Overview of the Financial Results

The following table presents summarised consolidated income statements for the three and six months ended 30 June 2025, with comparatives for the three and six months ended 30 June 2024, respectively.

Three months financial review

Revenues for the three-month period ended 30 June 2025 amounted to €124.1 million (Q2 2024: €92.2 million). The increase in revenues was mainly driven by significantly higher copper concentrate volumes sold including inventories at the end of Q1 2025 and lower offsite costs, despite lower realised copper prices and a stronger Euro relative to the US Dollar.

Realised prices excluding quotation periods ("QPs") were US$4.27/lb copper during Q2 2025 compared with US$4.54/lb in Q2 2024. The realised price including QPs was approximately US$4.23lb during Q2 2025 (Q2 2024: US$4.13/lb).

Cost of sales for the three-month period ended 30 June 2025 amounted to €67.9 million, compared with €60.2 million in Q2 2024. Higher costs were primarily attributable to lower inventories from the previous quarter and partially offset with lower costs of electricity and consumables.

Cash costs were US$2.21/lb payable copper during Q2 2025 compared with US$2.88/lb in the same period last year. The reduction in unit cash costs was mainly due to higher copper production despite stronger Euro/US Dollar exchange rate compared to Q2 2024. AISC for Q2 2025, excluding one-off investments in the tailings dam and San Dionisio stripping, was US$2.81/lb payable copper compared with US$3.20/lb in Q2 2024. The decrease was primarily due to lower cash costs despite an increase in capitalised stripping.

Sustaining capex for Q2 2025 amounted to €0.5 million (Q2 2024: €1.1 million), mainly related to the new crusher and enhancements in the processing systems.  In addition, the Company continues to invest in the tailings dam project to increase storage capacity, having invested €4.0 million in Q2 2025 (Q2 2024: €4.4 million). Stripping costs capitalised for Cerro Colorado during Q2 2025 amounted to €9.9 million (Q2 2024: €1.3 million).

Capex associated with the construction of the solar plant amounted to €0.2 million in Q2 2025 (Q2 2024: €1.9 million), while investments in the E-LIX Phase I plant totalled €0.4 million (Q2 2024: €0.2 million). Additionally, capex of €2.2 million was related to the San Dionisio area during the quarter.

Corporate expenses amounted to €1.5 million (Q2 2024: €3.1 million) and include non-operating costs of the Cyprus office, corporate legal and consultancy fees, listing costs, officers and directors' emoluments, corporate office salaries and administrative expenses.

Exploration costs on Atalaya's project portfolio for Q2 2025 were €0.1 million, compared to €1.1 million in Q2 2024, with the reduction mainly due to a pause in drilling activities in Sweden during the summer months. As of 30 June 2025, the Company has recognised a prepayment of €0.8 million in relation to exploration activities not yet executed, although the funds have already been provided under agreements for the Skellefte Belt and Rockliden Projects.

Care and maintenance costs were €2k for the three-month period ended 30 June 2025 (Q2 2024: €1.6 million). The significant reduction compared with the prior year reflects the fact that, following the designation of Proyecto Touro as a Strategic Industrial Project by the Council of the Xunta de Galicia at the end of H1 2024, all direct costs associated with the mining development were capitalised in accordance with applicable IFRS criteria. The remaining costs, which were mainly administrative in nature and incurred through the local subsidiary Cobre San Rafael S.L., were no longer presented under care and maintenance, thus, in 2025, these costs were reclassified under administration and corporate expenses, and amounted to €0.4 million in H1 2025.

EBITDA for Q2 2025 amounted to €55.1 million, up from €26.4 million in Q2 2024, primarily driven by higher sales and lower unit costs.

Depreciation and amortisation for the quarter totalled €12.9 million (Q2 2024: €11.0 million).

Net foreign exchange losses for Q2 2025 of €3.9 million resulted from the appreciation of the Euro against the US Dollar.

Net finance costs for Q2 2025 were nil, consistent with the same period in 2024.

Six months financial review

Revenues for the six-month period ended 30 June 2025 amounted to €254.8 million (H1 2024: €162.1 million). The increase in revenues was mainly due to significantly higher concentrate volumes sold with slightly higher realised copper prices.

Copper concentrate production during the six-month period was 157,258 tonnes (H1 2024: 113,308 tonnes), with 169,253 tonnes of copper concentrate sold (H1 2024: 111,281 tonnes). Inventories of concentrates at the reporting date were 9,820 tonnes (21,815 tonnes as at 31 December 2024).

Copper contained in concentrates sold was 28,711 tonnes in H1 2025 (H1 2024: 21,683 tonnes).

Realised copper prices excluding QPs for H1 2025 were US$4.27/lb, compared with US$4.26/lb in H1 2024. The realised price remained close to the market average, which was US$4.28/lb in H1 2025 versus US$4.13/lb in H1 2024. No hedging agreements were entered into during the period.

Cost of sales amounted to €140.2 million in H1 2025 (H1 2024: €117.0 million). The cost increase was related to higher volumes, the increase in waste mined and lower inventories at the end of the period with a lower unit cost.

Cash costs were US$2.23/lb payable copper, compared with US$2.93/lb in H1 2024. The reduction in cash costs was mainly due to higher copper production and lower offsite cost. AISC, excluding investment in tailings dam and San Dionisio stripping, was US$2.78/lb payable copper (H1 2024: US$3.19/lb) with a higher stripping cost capitalised.

Sustaining capex for H1 2025 totalled €2.0 million compared with €1.6 million in H1 2024, mainly related to the new crusher and enhancements in the plant's processing systems. Additional investment in tailings dam €8.0 million compared with €7.5 million invested in H1 2024. Stripping costs capitalised for Cerro Colorado during H1 2025 amounted to €17.2 million (H1 2024: €1.3 million).

Capex for the solar plant was €0.5 million in H1 2025 (H1 2024: €2.6 million) while investments in the E-LIX Phase I plant, commissioning and ramp-up totalled €0.9 million and €4.0 million related to the convertible loan. Additionally, a capex of €5.2 million is related to the San Dionisio area.

Corporate costs for H1 2025 were €4.1 million (H1 2024: €5.2 million), mainly comprising the Company's overhead expenses.

Exploration costs totalled €3.4 million (H1 2024: €1.9 million), mainly due to activities in the Skellefte Belt and Rockliden Projects in Sweden and Proyecto Masa Valverde.

EBITDA for the six months ended 30 June 2025 amounted to €107.6 million (H1 2024: €36.7 million).

Depreciation and amortisation for H1 2025 totalled €25.8 million (H1 2024: €20.6 million).

Net foreign exchange loss was €6.0 million (H1 2024: €2.2 million).

Net finance cost for H1 2025 amounted to €0.1 million, compared with a cost of €0.1 million in H1 2024.

Copper prices

The average realised copper price (excluding QPs) decreased by 6.1% to US$4.27/lb in Q2 2025, from US$4.54/lb in Q2 2024.

The average prices of copper for the three and six month period ended 30 June 2025 and 2024 are summarised below:

Realised copper prices for the reporting period noted above have been calculated using payable copper and excluding both provisional invoices and final settlements of QPs together. The realised price during Q2 2025, including the QP, was approximately US$4.23/lb.

5.    Non-GAAP Measures

Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Costs per pound of payable copper", "All-In Sustaining Costs" ("AISC") "realised prices" and "Net Cash/Debt" in this report. Non-IFRS measures do not have any standardised meaning prescribed under IFRS, and therefore they may not be comparable to similar measures presented by other companies. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for indicators prepared in accordance with IFRS.

EBITDA includes gross sales net of penalties and discounts and all operating costs, excluding finance, tax, impairment, depreciation and amortisation expenses. Cash Costs per pound of payable copper includes cash operating costs, including treatment and refining charges ("TC/RC"), freight and distribution costs net of by-product credits. Cash Costs per pound of payable copper is consistent with the widely accepted industry standard established by Wood Mackenzie and is also known as the C1 Cash Costs.

AISC per pound of payable copper includes C1 Cash Costs plus royalties and agency fees, expenditures on rehabilitation, capitalised stripping costs, exploration and geology costs, corporate costs and recurring sustaining capital expenditures but excludes one-off sustaining capital projects, such as the tailings dam project.

Realised price per pound of payable copper is the value of the copper payable included in the concentrate produced including the discounts and other features governed by the offtake agreements of the Group and all discounts or premiums provided in commodity hedge agreements with financial institutions if any, expressed in USD per pound of payable copper. Realised prices do not include period end mark to market adjustments in respect of provisional pricing. Realised price is consistent with the widely accepted industry standard definition.

6.    Liquidity and Capital Resources

Atalaya monitors factors that could impact its liquidity as part of Atalaya's overall capital management strategy. Factors that are monitored include, but are not limited to, the market price of copper, foreign currency rates, production levels, operating costs, capital and administrative costs.

The following is a summary of Atalaya's cash position and cash flows as at 30 June 2025 and 31 December 2024.

Liquidity information

⁽¹⁾  Includes borrowings

Unrestricted cash and cash equivalents, which include balances held at both Group and Operation levels, increased to €103.0 million as at 30 June 2025, compared with €52.9 million at 31 December 2024. This significant increase was primarily driven by strong cash inflows from operating activities, partially offset by investment outflows and moderate financing movements. At the Group level, cash rose from €43.2 million to €83.7 million, while Operation-level cash increased from €9.7 million to €19.3 million.

The Group generated €78.3 million in net cash from operating activities during the first six months of 2025, supported by solid EBITDA and limited tax payments, despite a working capital outflow mainly attributable to a €38.0 million increase in trade and other receivables. Cash outflows from investing activities totalled €41.8 million, reflecting continued capital expenditure in strategic areas such as San Dionisio and processing plant upgrades. Net financing cash flows were positive at €14.9 million, with new borrowings of €19.7 million drawn temporarily in order to settle an intercompany loan, exceeding repayments of €4.6 million.

As of 30 June 2025, the Group reported a working capital surplus of €92.2 million, compared with €44.7 million at year-end 2024. The improvement is largely explained by the stronger cash position and an increase in short-term receivables, which offset modest changes in inventories and trade payables. The Group's net cash position also doubled during the period, reaching €70.1 million, up from €35.1 million at 31 December 2024. All cash balances remain unrestricted and available for general use at both the operational and corporate levels, reinforcing Atalaya's robust liquidity and financial flexibility.

Overview of the Group's cash flows

Three months cash flows review

Total net cash inflow for the three months ended 30 June 2025 was €34.2 million, primarily driven by strong cash generation from operating activities. Cash from operating activities amounted to €52.2 million, while investing activities consumed €19.4 million, and financing activities contributed a net inflow of €1.3 million.

Cash generated from operations before changes in working capital was €55.3 million. During the quarter, inventories decreased by €6.6 million, trade and other receivables increased by €0.1 million, and trade and other payables decreased by €2.5 million, resulting in a modest net working capital inflow.

Investing activities consumed €19.4 million, mainly related to ongoing development works at the tailings dams, the San Dionisio deposit, and continued upgrades to processing infrastructure.

Financing activities generated a net inflow of €1.3 million, primarily from new borrowings of €3.1 million, partially offset by repayments of €1.7 million and lease payments of €0.1 million.

Six months cash flow review

For the six months ended 30 June 2025, the Group reported a net cash inflow of €51.4 million. This included net cash from operating activities of €78.3 million, investing outflows of €41.8 million, net financing inflows of €14.9 million, and negative foreign exchange differences of €1.3 million.

Cash generated from operations before working capital movements was €108.1 million. However, working capital movements during the period had a net outflow effect, driven by a €29.3 million increase in trade and other receivables, an €11.8 million decrease in inventories, and a €3.1 million decrease in trade and other payables.

Cash outflows from investing activities of €41.8 million mainly reflect capital expenditure related to the San Dionisio area, tailings storage facilities, and processing plant upgrades.

Financing activities resulted in a net inflow of €14.9 million, reflecting €19.7 million of new borrowings drawn temporarily in order to settle an intercompany loan, offset by €4.6 million of repayments and €0.3 million of lease and interest payments.

Foreign exchange

Foreign exchange rate movements can have a significant effect on Atalaya's operations, financial position and results. Atalaya's sales are denominated in U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and other expenses are mainly denominated in Euros ("EUR") which is the functional currency of the Group, and to a much lesser extent in British Pounds ("GBP").

Accordingly, fluctuations in the exchange rates can potentially impact the results of operations and carrying value of assets and liabilities on the balance sheet.

During the three and six months ended 30 June 2025, Atalaya recognised a foreign exchange loss of €3.9 million and €6.0 million, respectively. The foreign exchange loss mainly related to the appreciation of the Euro against the US Dollar, as a significant portion of sales proceeds are held in USD.

The following table summarises the movement in key currencies versus the EUR:

7.    Sustainability

Corporate Social Responsibility

During the second quarter of 2025, Fundación Atalaya continued to strengthen its role as a catalyst for sustainable development in the Cuenca Minera, with a focus on education, cultural promotion, and support for local communities.

The fifth edition of the Mining Operations Training Course concluded its theoretical component during the quarter. Participants have now entered the internship phase, gaining hands-on experience working with local mining-related companies during the summer. This initiative continues to enhance employability and sector-specific skills among residents of the region.

The Riotinto Experience project, which offers guided tours of the operational mine, continued to attract growing interest. It is steadily positioning Riotinto as a national benchmark in industrial tourism and contemporary mining education.

Fundación Atalaya also supported a diverse range of cultural and social initiatives. Key activities during the quarter included sponsorship of SEPER Adela Frigolet's XXI Cultural Week, poetry and music competitions (Rosario Santana and CEM Manuel Rojas), and local heritage events such as the San Antonio and San Juan Alto de la Mesa gatherings. Ongoing collaboration with community associations, including Asociación Nayeros, also continued. In the area of infrastructure and heritage, Fundación Atalaya contributed to the interior restoration of the parish church in El Campillo and supported a commercial revitalisation campaign led by APYME El Campillo.

Furthermore, a cultural preservation agreement was signed with the Ayuntamiento de Nerva to restore and catalogue the historical archive of the Casa del Maestro Rojas, contributing to the safeguarding and dissemination of the region's collective memory.

Health and Safety

In the second quarter of 2025, compared to the same period of the previous year, there was a slight uptick in incident rates due to a higher number of accidents involving contractor personnel. This increase is reflected in the frequency rate (FR) and severity rate (SR), which closed the half-year at 5.66 and 0.18, respectively. There was one lost-time accident involving Atalaya personnel and six involving contractors, all of which were of a minor nature.

Regarding accident reduction targets, the severity rate (SR) target was met, while the frequency rate (FR) target was not achieved, as the actual figure exceeded the established threshold for 2025.

In terms of Occupational Hygiene, nearly all of the planned measurements for the quarter were carried out, including: respirable crystalline silica and dust, organic vapours, asbestos fibres, and respirator fit testing for 55% of Atalaya Riotinto Minera, S.L.U.'s workforce, along with legionella prevention monitoring.

With regards to the First Response Brigade, specific training activities scheduled in the annual plan were delivered, such as casualty extrication, fire protection, and self-contained breathing apparatus (SCBA) use. SCBA rescue drills were conducted with the participation of the mine rescue chief from Sandfire-Matsa, fostering synergies with other mining operations and strengthening readiness for emergency response.

In this regard, in June, three members of the on-site brigade responded to a fire incident in an isolated area of the plant, successfully extinguishing and containing the fire until the public fire brigade arrived. The intervention prevented the fire from spreading to other parts of the facility and was managed quickly and effectively.

Also in June, an emergency drill was conducted in the General Warehouse area, with support from a specialist consultancy firm.

The second annual meeting of the Health and Safety Committee also took place during the quarter, a joint consultation and participation meeting with workers' representatives.

Psychoactive substance controls continue to be carried out at access points and in the medical unit. The improvement implemented last year, involving randomised controls using AI to select individuals or vehicles for substance (alcohol or drugs) testing, remains in effect.

The second phase of the "Zero Harm Challenge" project is ongoing, with working groups developing the 10 most prevalent and high-engagement proposals identified during phase one. The project has seen high participation and commitment levels, and its progress was presented in May to general management and ARM department heads.

Finally, the Field Leadership activities have been officially recognised as Best Occupational Health and Safety Practices by the Andalusian Institute for Occupational Risk Prevention (Junta de Andalucía).

Environment

During the second quarter of 2025, the Environmental Department maintained its focus on advancing environmental monitoring and natural resource management across the Riotinto operations. A total of three environmental incidents were reported during the period. The first involved a hydrocarbon spill on natural soil within the mining area during tanker refuelling activities, affecting an estimated surface area of 6 m². The second related to the outdoor accumulation of hazardous waste, specifically, empty oil GRGs, on natural soil within the mining area, although no soil contamination was identified. The third incident occurred in the milling area, where an oil spill took place during lubrication tasks. While no soil was affected, the area was promptly cleaned and restored, and the resulting waste was properly managed.

Rainfall levels during Q2 2025 were significantly higher than in the same period of the previous year, reaching 143.4 l/m², a 271% increase year-on-year. Cumulative rainfall for the current hydrological year (October 2024 to June 2025) totalled 1,074.2 l/m², representing a 30% increase over the same period in the prior year.

On 14 May 2025, the Company received official approval of a substantial modification to its environmental permit, enabling the expansion of mining operations into the San Dionisio deposit. In addition, three requests for non-substantial modifications to the permit were submitted during the quarter: (i) on 28 April, relating to diesel availability optimisation in the mining area; (ii) on 9 June, for the enhancement of mining road connectivity in San Dionisio; and (iii) on 20 June, concerning improvements to the retention pond at the North Waste Dump.

The department also submitted the required annual environmental documentation to the competent authorities, including the Annual Water Balance and the results of receiving river monitoring associated with authorised discharges. Measures established under the Dust Action Plan continued to be implemented, including intensified watering schedules, enhanced coordination, and systematic monitoring of dust emissions generated by operational activities.

Progress continued on the Restoration Plan, which covers both operational and legacy areas. In parallel, scheduled forest maintenance works were carried out in compliance with the approved Wildfire Prevention Plan. Annual external emissions control testing was completed in May without incident, while all routine internal monitoring of non-ducted atmospheric emissions also confirmed compliance with regulatory thresholds. All other mandatory periodic environmental controls were conducted on schedule and without issues. Several environmental reports were submitted to the relevant administrative authorities during the quarter.

Daily environmental inspections remained a key aspect of the department's operations, with a focus on chemical storage and handling, site cleanliness, waste management, prevention of uncontrolled releases, and the reinforcement of responsible environmental behaviour among both Atalaya personnel and contractors. Specific inspections also targeted dust suppression systems and drainage infrastructure. In total, 85 inspections were conducted across the plant, mining area, and contractor camps throughout the quarter.

8.    Risk Factors

Due to the nature of Atalaya's business in the mining industry, the Group is subject to various risks that could materially impact the future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to Atalaya. Readers are encouraged to read and consider the risk factors detailed in Atalaya's audited, consolidated financial statements for the year ended 31 December 2024.

The Company continues to monitor the principal risks and uncertainties that could materially impact the Company's results and operations, including the areas of increasing uncertainty such as the impact of macro-economic uncertainty on the business and geopolitical developments or the risks inherent in the development of new technologies.

In particular, Atalaya is closely monitoring the risks associated with the investments made in the E-LIX technology together with Lain Technologies Ltd (hereinafter "Lain"). While the leaching process E-LIX has continued to deliver results in line with technical expectations, progress towards achieving sustainable, economically viable throughput levels has been more challenging and materially slower than anticipated (Note 8).

9.    Critical accounting policies, estimates, judgements, assumptions and accounting changes

The preparation of Atalaya's Financial Statements in accordance with IFRS requires management to make estimates, judgements and assumptions that affect amounts reported in the Financial Statements and accompanying notes. There is a full discussion and description of Atalaya's critical accounting policies in the audited consolidated financial statements for the year ended 31 December 2024.

As at 30 June 2025, whilst there are no significant changes in critical accounting policies or estimates to those applied in 2024. We highlight the assumptions made in relation to Lain Technologies and the progress on the Industrial Plant in Note 8.

10.  Other Information

Additional information about Atalaya Mining Copper, S.A. is available at www.atalayamining.com

Unaudited condensed consolidated interim financial statements on subsequent pages.

By Order of the Board of Directors,

Neil Gregson

Chair

Sevilla, 11 August 2025